Now Reading: Indonesia to Take 60% Control of China-Funded Whoosh Railway
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Indonesia to Take 60% Control of China-Funded Whoosh Railway
Indonesia will take a controlling 60% stake in PT KCIC, operator of the $7.3 billion Whoosh high-speed railway linking Jakarta and Bandung, Finance Minister Purbaya Yudhi Sadewa said. Chinese state-owned firms will…
The Story in Brief
Indonesia will take a controlling 60% stake in PT KCIC, operator of the $7.3 billion Whoosh high-speed railway linking Jakarta and Bandung, Finance Minister Purbaya Yudhi Sadewa said. Chinese state-owned firms will retain 40%. An agency under the finance ministry will acquire the stake and repay the project’s outstanding loan without using the state budget, officials said.
Danantara chief operating officer Dony Oskaria said the transaction would be completed by mid-September. The 142-kilometre railway has faced land acquisition, pandemic-related delays and cost problems. Officials did not disclose the stake’s value or the terms for transferring the loan.
The Indian Opinion
The takeover could give Indonesia more direct control, but claims that taxpayers face no risk need careful scrutiny. Debt may still sit with state-owned entities, and the repayment plan is not public. Both enthusiastic praise and blanket criticism are premature. The useful test is simple: what transaction value, loan terms and future costs will Indonesia publish?
Source: economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
